The Bank of Russia decided to revoke effective November 1, 2011 banking licenses held by UIK-Bank (Chelyabinsk, Registration No. 1300), and also from non-banking lending institution Tuvacredit (Republic of Tyva, the town of Kyzyl, Registration No. 1202-K), the PR department of the Central Bank of the Russian Federation reported.

This decision was taken as UIK-Bank failed to fulfill federal laws regulating banking activities and CBR statutory acts, due to identified instances of material misstatement of financial reports, the bank’s inability to meet monetary claims of creditors and also taking into account the application on numerous occasions of the measures stipulated in the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” during the year.

Tuvacredit’s license was cancelled due to its failure to comply with federal banking laws and CBR’s statutory acts, numerous violations during the year of requirements provided for in Article 6 and Article 7 (except for Clause 3 of Article 7) of the Federal Law “On Counteracting Legalization (Laundering) of Crime Income and Financing of Terrorist Acts”, and also taking into account the numerous application of procedures stipulated in the Federal Law “On the Central Bank of the Russian Federation”.

In accordance with CBR’s order, temporary administration teams commenced work at UIK-Bank and Tuvacredit until a bankruptcy receiver or a liquidator is appointed. The powers and authority of the lending institutions’ executive bodies were suspended.

UIK-Bank and Tuvacredit are members of the national deposit insurance system. The revocation of a banking license is an insured event as provided for in the Federal Law “On Insuring Private Deposits Held with Banks of the Russian Federation”.